H2O America Wins Approval to Delay Rate-Setting Filings, Keeping Water Costs Stable Through 2027

H2O America (NASDAQ:HTO) announced today that its wholly owned subsidiary, San Jose Water Company, along with three other California water utilities (the "Joint Parties") received a letter dated Nov. 18, 2025, from the Executive Director of the California Public Utilities Commission ("CPUC") granting the Joint Parties' request to defer their scheduled 2026 Cost of Capital ("COC") filings to May 1, 2027.

On Nov. 10, 2025, the Joint Parties filed a request for a one-year postponement of their COC filings otherwise scheduled to be filed on May 1, 2026. Pursuant to the CPUC's rate case plan, the Joint Parties are required to file their COC applications every three years. The last COC decision was issued on June 29, 2023. The Joint Parties previously requested one-year deferments for 2025 and 2026, which were granted. Postponing the filing for one additional year alleviates administrative processing costs for both the Joint Parties and CPUC staff.

"This approval provides greater clarity and stability for our customers through 2027," said San Jose Water Company President, Tanya Moniz-Witten. "We deeply appreciate the CPUC's support and timely response, and we are confident this positions us well for continued success."

The deferral includes a provision that the WCCM remains in place until Jan. 1, 2028. The WCCM allows the ROE to adjust up or down in accordance with the movement in the Moody's Aa Utility Bond Index.

San Jose Water's 9.81% ROE will remain in effect through 2027 absent an adjustment by the WCCM.  As a reminder, the 9.81% ROE reflects our CPUC-approved 10.01% base ROE prior to a 20-basis-point reduction related to the WCMA.  The WCMA is a temporary revenue protection mechanism authorized by the CPUC due to a voluntary 15% water reduction request from San Jose Water's water wholesaler because a large reservoir is offline for seismic dam improvements.hto